DEERFIELD, IL -- Mondēlez International Inc.'s second-quarter profit fell 40% while earnings and revenue edged higher.
The maker of Oreos, Cadbury chocolates, Ritz crackers and Trident gum reported a second-quarter profit of $616 million, or 34¢ a share, down from $1.03 billion, or 58¢ a share, a year earlier. Revenue ticked up 0.8% to $8.6 billion. The year-earlier period included $544 million in income from discontinued operations.
In North America, organic sales were up 2.3%, which Mondēlez attributed to strong demand for cookies, offset by declining gum sales. Organic sales rose 9.6% in Latin America, 3.3% in the Asia Pacific region and 11% in Eastern Europe, the Middle East and Africa.
Mondēlez missed its target annual growth rate for the fourth consecutive quarter since it spun off its North American grocery business in October. The company's organic sales growth reached 3.8% in the latest quarter, below its targeted 5% to 7% growth rate.
The company is betting on snackers in emerging markets like Brazil and China to accelerate sales growth. Chief executive Irene Rosenfeld said the company expects to see investments in these markets pay off with quicker growth in the second half of the year, despite signs of slowing momentum in markets like China, Brazil and Russia.